LG Display is making moves to shake up its supply chain for iPhone OLED panels, according to reports from Korean media outlet The Elec. The company is bringing in Taiwan-based Novatek as a new supplier of DDI chips, aiming to reduce production costs amid challenges faced by both LG Display and Samsung Display in manufacturing the upcoming iPhone 16’s panels due to a new design with slimmer borders.

Diversifying its DDI chip suppliers by adding Novatek alongside current supplier LX Semicon, LG Display gains leverage for potentially better pricing and avoids dependence on a single source that could cause delays if issues arise. This strategic move is crucial in tackling the challenges posed by the new iPhone design and securing a cost advantage.

Both LG Display and Samsung Display are reportedly encountering difficulties in achieving desired yield rates for the iPhone 16’s OLED panels due to Apple’s design choice of significantly reducing bezels. To meet Apple’s yield rate targets, both companies will need to fine-tune their manufacturing processes, possibly incorporating new technology like BRS (Border Reduction Structure) to achieve ultra-thin bezels on the iPhone 16 models.

Earlier rumors suggest that only the iPhone 16 Pro and Pro Max models may feature larger displays with slimmer bezels, while the standard iPhone 16 and iPhone 16 Plus might not undergo any display changes. However, Apple typically keeps its latest technology for Pro models, so all four models could potentially benefit from BRS tech.

The next-generation iPhone is expected to debut in September this year, with more leaks and rumors anticipated as we approach the launch date. Stay tuned for updates as we learn more about what Apple has in store for its latest lineup of smartphones.